Do I Have To File Taxes?

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If I don’t owe do I have to file taxes?

DFA reader Dorothy A. asked:

If I don’t owe any tax money, do I still have to file a tax return.

Great question Dorthy, let’s take a look at what the IRS says.

Who needs to file taxes?

From the IRS website:

You must file a federal income tax return if your income is above a certain level; which varies depending on your filing status, age and the type of income you receive.  Check the Individuals section of the IRS website at http://www.irs.gov or consult the instructions for Form 1040, 1040A, or 1040EZ for specific details that may help you determine if you need to file a tax return with the IRS this year. You can also use the Interactive Tax Assistant available on the IRS website to determine if you need to file a tax return. The ITA tool is a tax law resource that takes you through a series of questions and provides you with responses to tax law questions.

From the 1040 instructions:

Use Chart A, B, or C to see if you must file a return. U.S. citizens who lived in or had income from a U.S. possession should see Pub. 570. Residents of Puerto Rico can use TeleTax topic 901 (see page 91) to see if they must file.

Even if you do not otherwise have to file a return, you should file one to get a refund of any federal income tax withheld. You should also file if you are eligible for any of the following credits.

  • Making work pay credit.
  • Earned income credit.
  • Additional child tax credit.
  • American opportunity credit.
  • First-time homebuyer credit.
  • Credit for federal tax on fuels.
  • Adoption credit.
  • Refundable credit for prior year minimum tax.
  • Health coverage tax credit.

Exception for certain children under age 19 or full-time students. If certain conditions apply, you can elect to include on your return the income of a child who was under age 19 at the end of 2010 or was a full-time student under age 24 at the end of 2010. To do so, use Form 8814. If you make this election, your child does not have to file a return. For details, use TeleTax topic 553 (see page 91) or see Form 8814.

A child born on January 1, 1987, is considered to be age 24 at the end of 2010. Do not use Form 8814 for such a child.

Resident aliens. These rules also apply if you were a resident alien. Also, you may qualify for certain tax treaty benefits. See Pub. 519 for details.

Nonresident aliens and dual-status aliens. These rules also apply if you were a nonresident alien or a dual-status alien and both of the following apply.
• You were married to a U.S. citizen or resident alien at the end of 2010.
• You elected to be taxed as a resident alien.

Chart A, which applies to most people

[table id=6 /]

If chart B, C, or other detailed info is needed, please consult the IRS 1040 instructions.  You can also read the article from the IRS detailing who should file.

If you do need to file and haven’t yet, I recommend TurboTax – read my full TurboTax Online review.  Don’t forget that you can also file a tax extension.



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